The Lima Stock Exchange launches the S & P / BVL Peru General ESG Index

The Lima Stock Exchange (BVL) announced the launch of S&P/BVL Peru General ESG Index, the latest addition to S&P DJI’s growing global family of ESG indices, which are based on some of the world’s most followed country and regional benchmarks.

Powered by the BVL and the S&P Dow Jones Indices (S&P DJI), the world’s leading index provider, this novel index uses rules-based selection criteria that employ relevant ESG principles to select and weight components based on the S & P / BVL. Peru General Index, Peru’s main stock index.

The objective is to provide an ESG benchmark that follows the “best in class” approach for the Peruvian securities market, in order to help promote sustainable business activities in the local market.

“The ESG criteria have established themselves as a fundamental strategy for investors. (…) We are delighted to be working with the Lima Stock Exchange to continue expanding our ESG strategy in Latin America with the launch of the S & P / BVL Peru General ESG Index ”, stated Jaspreet Duhra, Managing Director and Global Director of ESG Indices at S&P DJI.

This new index will be a useful tool for investors and companies that recognize the importance and relevance of corporate sustainability data and principles. The objective is to stimulate greater commitment from companies through greater transparency and the implementation of sustainable business practices.

“From the Lima Stock Exchange we have assumed the commitment to lead the transformation of the local stock market ecosystem towards a more sustainable, inclusive and competitive one. With this new index we seek to provide a new technical, robust, transparent and dynamic tool to better guide investors and companies’ efforts, “he said. Miguel Angel Zapatero, general manager of the BVL.

S&P/BVL Peru General ESG Index: metodología

The S & P / BVL Peru General ESG Index begins with all the components of the S & P / BVL Peru General Index. Excluded from the index are companies involved in the conventional arms, tobacco and coal industries, as well as those that present disqualifying scores according to the United Nations Global Compact.

The remaining eligible companies are then selected based on their previous year’s S&P DJI ESG score, which comes from the S&P Business Sustainability Assessment (CSA). Companies with ESG scores equal to or higher than the median of the S & P / BVL Peru General Index are selected for inclusion in the index, as well as companies with a score between the median and 25% lower in proportion to the median score.

The S & P / BVL Peru General ESG Index will initially have fifteen components in order of weight, such as Credicorp Limited, Compañía de Minas Buenaventura, InRetail Peru, Southern Copper, Ferreycorp, Aenza (exOdebrecht), and Backus, among others.